Grande West Transportation - Route To Revenues

BUS:TSX.V

Marketing, marketing, marketing has been the central theme for Grande West Transportation in the first half of calendar 2014 with its Vice President, Business Development attending several key conferences amidst a multitude of meetings with  transit authorities and private operators.  

Jean-Marc Landry, had a lengthy, successful past running sales at Nova Bus for many years. Jean-Marc has been in front of Grande West’s immediate target list of about 100 potential buyers across Canada including transit authorities and larger private operations to ensure they are fully acquainted with Grande West and the attributes of its flagship bus, the Vicinity, versus the competition.

Video below offers some insight into the many attributes of the Vicinity through an introduction by Jean-Marc.

CFO Visits China

New 30 Foot Vicinity With 2 Doors

John Sutherland, CFO is back from a recent trip to China where he spent time with management of the automotive division of the Weichai Group which assembles the multiple components that make up the Vicinity.  Management has built a strong relationship with the Weichai Group over the past four years. Grande West also has a full time quality control person in place during all builds of the Vicinity.

Final Assembly and Finishing Area

Twelve buses are for Quebec and three for a Nova Scotia transit authority plus three new demonstration buses including a new 30 foot model with two doors have been added to the current production run. These three Vicinity buses will be utilized for marketing and customer testing in key markets across the country.   The 30 foot Vicinity bus has been specifically designed for the needs in the Ontario transit market. This bus will be demonstrated in Ontario, being Canada's largest transit market, and also will be utilized as a demonstration Vicinity bus for airport shuttle bus applications.

Automotive Division of Weichai Group,
 Xiaman, China - A Duty-Free Zone

BBC Asks “Where is Flight MH370” - Is FLYHT’s Technology The Answer?

FLY:TSX.V

Few FLYHT stakeholders have had the opportunity to see a live demonstration of AFIRS. The BBC program Horizon recently provided the world with an insider view of the FLYHT technology in action as part of a documentary on the mysterious disappearance of the Malaysian flight.

This past spring, BBC crews were aboard a First Air aircraft in Ottawa, Ontario to film AFIRS in use with several minutes of the footage used in the documentary. First Air and FLYHT announced this past April that the airline was adding FLYHTStream’s automatically triggered, real-time data and live black box streaming capability to its fleet of B737, ATR and B767 aircraft. Click here to read the news release.  

The AFIRS system is highlighted in the documentary as a technology that could help prevent the future disappearance of aircraft.  To view the documentary, please click here (AFIRS is featured at the 50 minute mark).

- Brad Dryer

Grant Howard

YANGAROO Eliminates Debt - Well Positioned For Growth

YOO:TSX.V

While many junior companies are struggling to raise money in today’s environment, there are a few bright lights on the TSX Venture exchange. YANGAROO announced today that it closed the first tranche of its brokered private placement for gross proceeds of $1.2 million. The raise was done at $0.30 with NO WARRANTS ATTACHED. It was noted that YOO could raise up to $2 million, but the company has decided to cap the amount at $1.6 million as this reduces dilution.

The remaining $400 thousand amount to reach the $1.6 million is going to be taken up by one investor. Today’s (June 12th) news release stated the company was giving the investor more time to participate and has scheduled the close of the second tranche on or before July 29, 2014.

Today’s news follows yesterday’s announcement that the company paid off 100% of its outstanding $2.3 million debenture debt. This is significant for YANGAROO as it will save the company approximately $77 thousand per quarter in interest expenses. Click here to view yesterday’s news of YANGAROO’s repayment and redemption of all debentures.

In speaking with YANGAROO management today, it was expressed that the company now has the money it requires to accelerate growth.   

Please click here to view full press release.

Join Critical Elements At Its AGM On June 13th

CRE:TSX.V

Critical Elements would like to invite shareholders to its Annual General Meeting which will take place Friday, June 13, 2014 at 11:00 am EST.

The AGM will be held at the Saint-James Club – 1145 Union Avenue in Montreal, Quebec.

If you are able to attend, please RSVP to: info@howardgroupinc.com.

Management would like to remind shareholders to vote your shares prior to the deadline of 5:00 pm EST, Wednesday, June 11, 2014.

YANGAROO Teams Up With European & Brazilian Partners For Leading Music Industry Conference

YOO:TSX.V

Every year the who’s who in the music industry gathers in New York to discuss the business of music. This week YANGAROO announced that it will have a presence with partners Federation X and Kollector at the New Music Seminar (NMS) June 8 to 10 in New York. The NMS attracts more than 450 artists, 160 speakers, more than 30 seminars and over 6,000 attendees from all facets of the Music Industry.

"The NMS is the ultimate destination where artists, industry players, and companies are provided the knowledge, tools, and connections they need to succeed and build the New Music Business.” - http://newmusicseminar.com/

YANGAROO has teamed up with Federation X, YANGAROO’s European licensee and another industry leading software company Kollecto to attend the New Music Seminar. To view the Federation X License news release, please click here.

This collaboration will give independent European artists world class tools to distribute content and to monitor airplay through the use of YANGAROO’s Digital Media Distribution System and Kollector’s monitoring service.

“With Kollector, you can now estimate royalties using a transparent and immediate tool but also have a precise vision of how well your catalogue is doing on the market, providing everyone with a remarkable benchmarking weapon and promo results numbers at the glimpse of an eye!" said Jacques Krischer CEO, Kollector.

YANGAROO’s service is used by over 5000 broadcasters in North America and is expected to move into Europe and Brazil later this year. Currently YANGAROO’s DMDS delivers over 90% of all music videos sent to major broadcasters in North America. These include MTV/VH1, BET, REVOLT, Fuse, Music Choice, MuchMusic, CMT, GAC, and many more.

To view full news release, please click here.

Kollector - http://www.kollector.com/
Federation X - http://www.federationx.com/Federation_X/Home.html

Pope & Company Initiates Coverage On FLYHT – BUY With A $1.05 Target

FLY:TSX.V

Fadi Benjamin from Toronto based, Pope & Company has become the fifth analyst to initiate coverage of FLYHT Aerospace, with a BUY rating and a target price of $1.05.

The key points in the report titled “FLYHT VECTORING FOR GROWTH” are as follows:

• Immense market size:  A sizable and growing market of 20,310 airplanes in service, and 35,280  airplanes to be delivered in the next 20 years. 
• Differentiated/Purpose-Built: FLYHT’s technology is unrivalled by flight data gathering systems, in‐flight  entertainment, or passenger connectivity focused solutions.
• Value Creating To End Customer: Our analysis supports US$150,000 of direct cost savings per year per airplane from fuel management, maintenance rationalization , and accurate time focus only on program wins and moderate contribution from the sales force.  Applying this to Southwest Airlines’ fleet, net savings could contribute over US$60MM to the bottom line in 2013.
• Growth Catalysts: Our conservative assessment is based on realizing revenues from three  programs: SkyBlue (218 aircraft), Datang (415 aircraft), and an L‐ partnership with Airbus.  Significant upside potential exists from new program wins, a partnership with a Boeing  approved  factory  supplier,  and  supportive  direct  sales  into  other  airlines. 
• Valuation: Our valuation is based on a 5‐year DCF analysis using a discount rate of 10%  and a terminal value growth rate of 3.9%, in‐line with industry peer projections. Our target  price corresponds to an EV/EBITDA multiple of 14.8x on projected FY2016.  
• Investment  Recommendation:  We  rate  FLY  a  BUY  for  its  exceptional  growth  profile, differentiated product, and market size. In our opinion, FLYHT is ahead of its competition,  and presents  a  unique  and  sought  after  solution. 

For a copy of the Pope & Company research report on FLYHT please contact Fadi Benjamin at 416-588-9397 or by email at fadi@popecompany.com.

About Pope & Company

Pope & Company Limited is an independent full service financial services firm founded in 1962. Our long established history as one of the oldest member firms on the Toronto Stock Exchange allows us to take a unique and measured view of the markets. We provide institutional services through our Capital Markets division and individual services through our Asset Management division.

We have a proven track record of identifying undervalued opportunities. We are active in the trading of equities, syndicated bank debt, corporate bonds as well as certain distressed debt situations. We combine best-in-class corporate advice with our proprietary sources of institutional debt and equity capital. In addition we have in-house mergers, acquisitions advisory and capital structuring expertise. By consolidating advice and access, we offer our clients innovative capital markets solutions individually tailored to their requirements. 

Pope & Company is employee owned, enabling us to take an unbiased and concrete approach to client relationships while avoiding the conflicts encountered by many large investment banks. Pope is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and The Canadian Investor Protection Fund (CIPF).

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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Join Grande West At AGM And Tour Vancouver On The Vicinity Bus

BUS.TSX.V

Grande West would like to invite shareholders to its Annual General Meeting which will take place Thursday, May 29th at 10:00 am.

The AGM will be held at Blake, Cassels & Graydon LLP -  Suite 2600, 595 Burrard Street in Vancouver, BC. Following the meeting, shareholders can take the opportunity to see what all the fuss is about and tour downtown Vancouver on Grande West’s Vicinity bus.

If you are able to attend, please RSVP to:  info@howardgroupinc.com. 

Management would like to remind shareholders to vote your shares prior to the deadline of 10:00 am, May 27th.

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Shares Outstanding: 35,840,000
Shares Fully Diluted: 39,972,000

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BNN: Clarus Analyst – FLYHT Aerospace Could Benefit From More Plane Tracking

FLY:TSX.V

This morning on Business Day, a popular show on Canada’s Business News Network (BNN), Eyal Ofir, Technology Analyst for Clarus Securities discussed FLYHT Aerospace.

Mr. Ofir covers FLYHT and gives it a SPECULATIVE BUY rating with a $1.10 price target.

To view the segment, please click here  (FLYHT is discussed at the 5:40 mark.)

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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FLYHT Conference Call & Global Update

FLY:TSX.V

FLYHT CEO Bill Tempany covered a broad range of topics in yesterday’s (May 14th) first quarter conference call with a strong emphasis on the status of key business initiatives such as China and L-3 Communications-Airbus as well as several key conferences that FLY representatives will be attending in the near-term.

In re-capping first quarter results, he noted that the organization remains focused on achieving the break-even point in 2014. In the quarter FLYHT generated $1.34  million in revenue; which represents a decrease of 21.5% over the same period last year. However, Q1 customer deposits were $1.30 million, an increase of 100.2% over the first quarter of 2013 and unearned revenue was $1.36 million, also a solid increase over last year.

In relation to FLY’s revenue model, Mr. Tempany expressed that it is important to understand the below points:

• When a customer makes an order, the customer gives FLYHT a deposit.
• Then when FLYHT delivers the order, it registers as "Unearned Revenue."
• When the unit is installed, and activated the sale them moves into AFIRS UpTime Sales.
• Then if the airplane is in service, FLY generates monthly AFIRS UpTime Usage fees. 

Mr. Tempany also spent considerable amount of time talking about the latest announcement from Inmarsat, as there were a series of questions on a recent announcement from the satellite company. It stated that it is now going to offer customers free real time data streaming, which speaks to the controversy surrounding the disappearance of Malaysian Flight 370.

He said that he believes this offer of free data streaming doesn't affect FLYHT. Flight-following is just one small piece of the technology that FLYHT provides, which is first and foremost designed to save airlines money and increase operating efficiency. That functionality, though important, isn‘t driving the sales of FLYHT‘s AFIRS units. For example: China's mandate is for satellite communications, or satellite phones. Inmarsat does offer satellite communications, however the system is more expensive than AFIRS and there a major dead zones, particularly over the poles.

Global Maxfin Analyst Joe MacKay sent some notes from his attendance at yesterday's ICAO (International Civil Aviation Organization) press conference on the offer of "free basic" airline tracking.

"ICAO indicated during its press conference that it was "thankful" to Inmarsat for their offer, but at the end of the day, the Inmarsat proposal "probably does not get us where we want to be, and we told them that today." ICAO is putting together a task force(based on 20 member states) that will review and make recommendations to ICAO by September (FLYHT is a member). They are working under a best practices methodology which means that members can be complaint based on what is best for their circumstances (i.e some members do not fly over water as much as others).

To listen to an archive of today‘s conference call, please click here. 

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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YANGAROO Signs Deal With U.S. Cable Giant

YOO:TSX.V

YANGAROO has signed a major agreement with New York based, Cablevision Media Sales (CMS) to provide a cloud based media distribution platform for all CMS’ properties. YANGAROO’s Digital Media Distribution System (DMDS™) will give advertisers the ability to seamlessly transmit commercials in more than 200 different file formats.

Cablevision Media Services operates five companies under its umbrella with a combined reach upwards of 11 Million viewers and readers. CMS properties include New York Interconnect, News 12, and regional and local cable systems, print, cable news and media purchasing companies. While financial terms weren’t disclosed, revenue from this agreement will start to be recognized in YANGAROO’s second quarter results. 

“At Cablevision Media Sales, our advertisers are key to our success,” said Ed Renicker, Chief Operating Officer of CMS.  “By providing this service—free delivery of commercial content to our regional and local properties, we are helping our advertisers in a number of ways.  We’re streamlining their workflows, making it easier to do business with us, and, in effect, helping them with their bottom-line.  Of course, leveraging the technology from YANGAROO is helping us do all of those same things.  It’s a win-win for CMS and our advertising partners.”

To view the news release in its entirety, please click here.

About Cablevision Media

CMS it is a subsidiary of Cablevision Systems Corporation (NYSE:CVC Mkt Cap $4.65B), the 8th largest cable and telephone provider in the United States. The Madison Square Garden Company, owners of the New York Knicks, New York Rangers and New York Liberty is a spinoff of Cablevision. AMC, the network that brought you Breaking Bad and The Walking Dead is also a Cablevision spinoff.  

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Shares Outstanding:  ~ 40M
Shares Fully Diluted:  ~ 56M 

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Critical Elements Takes a Step Towards Securing Off-Take Agreements

CRE:TSX.V

It’s a fairly common business practice to provide samples to prospective customers as an important step in getting them to pay attention to your product. Such is the case with Critical Elements as it has started shipping batch samples of lithium concentrate and will be sending lithium carbonate samples in the near future for quality testing and validation to potential end users.

Lithium has been in the news as of late as its importance to the future growth of hybrid or electric car production is becoming increasingly understood by the general public. Most certainly, battery manufacturers are on the CRE list as potential buyers.   

Importantly, the Company’s low iron ore content material has significant advantages as it speaks to the potential quality and improved economics of using its material.

The company also announced that President and CEO Jean-Sébastien Lavallée will be speaking at the 6th Lithium Supply & Markets Conference in Montreal May 20th – 22nd 

To view press release, please click here.  (Pour la version française, cliquez ici)

Carfinco Increases Net Earnings & Finance Receivables

CFN:TSX

Carfinco announced its Q1, 2014 financial results today showing a 5.5% increase in net earnings while growing its finance receivable portfolio $1.1 million over the previous quarter.

In the release, Management noted that while Canadian competition has increased, Carfinco remains focused on long-term growth and structures its credit policies and programs in that regard.  It was mentioned that management continues to add financing programs that are beneficial to both its dealership network and its business strategy designed to retain valued customers that have established a positive payment history.

Carfinco continues to provide a strong return on shareholders equity at 30.8% and a low debt-to-equity ratio of 2.14:1, far below the 3.50:1 its credit facility allows for.

HIGHLIGHTS FOR THE FIRST QUARTER OF 2014

• Earnings per share of 20.0 cents;
• Dividends per share of 12.0 cents;
• Return on invested capital of 22.3%;
• Revenue of $24.0 million;
• Loan originations of $45.2 million;
• Loan originations have now reached over $1 billion since commencement of operations;
• Record finance receivables of $245.3 million; and
• 31+ day delinquent accounts were 4.0% at the quarter end.

A live conference call will be held today, Wednesday, May 14, 2014 at 11:00am MT (1:00pm ET) and will include a discussion by management about Carfinco‘s first quarter results followed by a question and answer period. Participants can access the conference call by phone within Canada and the U.S. by dialing the following numbers:

North America Toll-Free: 1-888-389-5988
Internationally: 1-719-325-2177

Callers should dial in five to ten minutes prior to the scheduled start time. An archive of the conference call will be posted in the Investor Relations section of the Carfinco website (www.carfinco.com), as soon as available from the provider.

To view press release in it's entirety, please CLICK HERE.

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Shares Outstanding: 26.4 million
Shares Fully Diluted: 26.4 million

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A Technology Insight on FLYHT Aerospace Drives A Positive Market Response

FLY:TSX.V

FLY stock moved to the positive side this morning after coming under recent pressure with much of the uptick attributable to an article posted in Technology Investment News. The article is called “Real Time Black Box Technology Takes Flight” and cites Portfolio Manager and Founder of Roadmap Capital, Hugh Cleland.

Mr. Cleland in his April letter to his fund’s investors went into great detail as to why FLYHT technology has the “go-to” technology. In the piece Mr. Cleland states “recent events (the disappearance of Malaysian Airline flight 370) have reinforced my expectation that FLY will be in the $1-$3 range within 3 years [200%-600% higher than current valuation].

Key highlights from the article:

• Current "Black Box Technology" is pre-internet - so vulnerable to communications mishaps that it's like attaching a message to a carrier pigeon.
• (FLYHT) has developed an emergency data streaming technology called "FLYHTStream". This technology sends critical data to ground-based operations using the Iridium satellite network through Iridium Communications.
• Inmarsat's (ISAT-LSE) recent offer to transmit GPS location data every 15 minutes for free is not expected to compete with FLY's instantaneous stream of aviation data points including: location, altitude, airspeed, pitch, roll, yaw, engine performance metrics and airframe indicators.
• Since January 2014 FLYHT has seen analyst coverage initiated by Clarus Securities, Byron Capital Markets, Salman Partners and Global Capital.
• "We are initiating coverage with a SPECULATIVE BUY recommendation and $1.10 target price," states the Clarus report, "We estimate that the opportunity in China could generate ~$24-57 million in hardware revenue over the next three years, while incremental recurring annual revenue could be as high as $11 million".
• The Salman Partners report forecasts "strong revenue and earnings growth in 2014 and 2015". It issued a SPECULATIVE BUY recommendation and a $0.85 target price [double its current share price].
• "We are initiating coverage of FLYHT with a STRONG BUY rating," states the Global Capital Report, "and a 12-month target price of $1.00."
• "Global movements catalyzed by the disappearance of Malaysian Flight 370 mean that the $2-$5 range for FLYHT is now quite possible on a 2-3 year basis," states Cleland, "Shorter-term, I will be surprised if we are not in the $1-$2 range by the end of 2014."

To view the full article, please click here.

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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YANGAROO’s Technology At The 2014 Canadian Music Week

YOO:TSX.V

The highly attended Canadian Music Week (CMW) festival in Toronto last week was the perfect venue for YANGAROO to spotlight its Digital Media Distribution System (DMDS) technology. It is a leading secure B2B digital cloud based solution focused on the music and advertising industries. YOO was there, talking to industry elites about DMDS and posted a video on YouTube about its experience at the festival.

About Canadian Music Week – May 6 – 10, 2014:

Now in its 32nd year, CANADIAN MUSIC WEEK is recognized as one of the premier entertainment events in North America focusing on the business of music. The Canadian Music Week festival spans 5 nights of performances, with 1,000 showcasing bands at more than 60 live music venues in downtown Toronto. All convention functions take place at the Toronto Marriott Downtown Eaton Centre.

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Shares Outstanding:  ~ 40M
Shares Fully Diluted:  ~ 56M 

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Global Maxfin Initiates Coverage On FLYHT: Analyst Count Continues to Grow

FLY:TSX.V

Toronto based Global Maxfin Special Situations Analyst Joe MacKay has initiated coverage on FLYHT Aerospace with a Strong Buy and a $1 target price.

Key highlights from the report include:

• FLYHT has developed strategic relationships with L-3/Airbus, NetJets, Datang, Mobile/COMAC, SKYBLUE Technology development (SKYBLUE).
• The number of patents in place and the complex and costly certification process create high barriers to entry.
• Forecasted revenue of $13.9M and $26.6M in 2014E and 2015E, respectively,
• EBITDA of $0.2M and 5.8M for 2014E and 2015E, respectively and EPS breakeven in 2014E and $0.03 for 2015E.

Upcoming catalysts include:

• Material sales to L-3/Airbus,
• Further progress with SKYBLUE in implementing China’s SATCOM mandate, and the production of the AFJ21.

He adds, “We are also looking for updates on FLYHT expanding its products to additional businesses and commercial aircraft OEMs. With the disappearance of Malaysia Airlines Flight 370, we will be monitoring regulatory developments with respect to the streaming of black box data.”

The report is titled “The Connected Aircraft” and was distributed to Global Maxfin clients and is available online, click here.  Joe MacKay can be reached at 647.776.1750 or by email at joem@globalmci.com.

Global Maxfin coverage adds to a growing list of firms covering FLYHT. Others include Byron Capital (Strong Buy - $1.25 Target), Clarus Securities (Spec Buy - $1.10 Target) and Salmon Partners.

About Global Maxfin Capital Inc.

Global Maxfin Capital Inc. (GMCI) is a Toronto-based full service investment dealer providing merger and acquisition advisory, capital raising service to middle market and emerging growth companies in the technology, telecommunications & industrial sectors in Canada.

http://www.globalmci.com/

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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